What Is Journal?: Double-Entry System of Accounting
What Is Journal?: Double-Entry System of Accounting
What Is Journal?: Double-Entry System of Accounting
A journal is the book of original entry or prime entry in which transactions are recorded from
the books of accounts from the source documents. The transactions are recorded in a
chronological order i.e., as and when they take place. The transactions are recorded
following the double-entry system of accounting.
What is Journalizing?
The process of recording transactions in the book of original entry is known as Journalising.
The transactions are recorded in the form of a Journal entry. Recording is made following the
double-entry system of accounting. Thus, it records the two-fold effect of every transaction.
In the process of Journalising, the transaction is first analyzed in order to decide the account
to be debited or credited by ascertaining the rule of debit and credit. After this, entries are
recorded in books of accounts.
Accounting Vouchers
Inventory Vouchers
And under Accounting Voucher there are already 10 nos. of ready to use Accounting
vouchers one among which is Journal voucher.
For Example: Credit purchases of fixed asset from creditor Rs. 50,000/-
For adjusting entries using journal voucher: The use of adjusting entry is to get accurate
financial result of a company.
For example: We use Journal vouchers in Tally for different scenarios listed below :
For journalising · Outstanding expenses are expenses which are due but not
Outstanding Expenses paid.
In such case initially we debit cash account for the sum received
and credit liability account like Accrued income account and on
completion and delivery we debit the liability account and credit
the revenue account using a journal entry.
For Transfer entries Transfer entries are used to transfer funds from one account to
another.